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Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market capitalization by the revenue in the most recent year; or, equivalently, divide the per-share price by the per-share revenue. The justified P/S ratio is calculated as the price-to-sales ratio based on the Gordon Growth Model.
Cash and cash equivalents ( CCE) are the most liquid current assets found on a business's balance sheet. Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". [ 1] An investment normally counts as a cash equivalent when it has a short maturity period of 90 days or less, and can ...
The price–earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. As an example, if share A is trading at $24 and the earnings per share for the most recent 12 ...
Tobin's q [a] (or the q ratio, and Kaldor's v), is the ratio between a physical asset's market value and its replacement value. It was first introduced by Nicholas Kaldor in 1966 in his paper: Marginal Productivity and the Macro-Economic Theories of Distribution: Comment on Samuelson and Modigliani .
The debt-to-equity ratio ( D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. [ 1] Closely related to leveraging, the ratio is also known as risk, gearing or leverage. The two components are often taken from the firm's balance sheet or statement of financial position ...
The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, [ 1] Shiller P/E, or P/E 10 ratio, [ 2] is a stock valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings ( moving average ), adjusted for inflation. [ 3]
Misconduct. v. t. e. A company 's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, [ 1] pronounced / ˈiːbɪtdɑː, - bə -, ˈɛ -/ [ 2]) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to ...
Stocks and flows in accounting. Thus, a stock refers to the value of an asset at a balance date (or point in time), while a flow refers to the total value of transactions (sales or purchases, incomes or expenditures) during an accounting period. If the flow value of an economic activity is divided by the average stock value during an accounting ...